FRANCHISE FEES
In business, no one gets something for nothing.
Should weigh the fee against the return
they could get putting the money into another type of business.
Franchisee also must pay to build the unit and stock it,
Although the franchisor many provide
assistance in securing a bank loan.
Additionally, a fee id usually tied to gross sales.
Typically pays an initial franchise fee,
spends his or her own money to build a store,
buys the equipment and inventory,
and then pays a continuing royalty based on sales
(usually between 5 and 12 percent).
Most franchisors require buyers to have 25 to 50 percent
of the initial costs in cash.
The rest can be borrowed—in some cases.